Two scenarios. Side-by-side. See which wins.

It matters less. If you sell or refinance at year 7, you only pay interest for 7 years — the “total interest over 30 years” number is theoretical. Most American homeowners move or refinance every 7–10 years.

Practical lens: compare total interest paid through the year you'll likely exit, not the loan's natural life. The 15-year advantage shrinks dramatically when looking at year-7 totals only.

Government insurance. FHA loans are insured by the FHA, eliminating most lender risk. The pricing is structurally lower — but the trade-off is permanent MIP at low down payments. See FHA loans for the full breakdown.

Apparent paradox: FHA can have a lower rate but a higher real monthly payment when MIP is included. Compare both numbers, not just the headline rate.

The compromise term. Lower interest than 30-year but more breathing room than 15-year. Total interest paid is roughly 35% less than 30-year, with monthly payment only 15–20% higher.

Best for: borrowers in their 40s who want to be debt-free before retirement but can't comfortably absorb the 15-year monthly. Less common because most lenders quote only 15 and 30 by default.

Conventional PMI cancels at 80% LTV, typically year 5–10 depending on home appreciation and principal reduction. Once it cancels, your monthly cost drops by $100–$300. See the Conventional loan walkthrough for the cancellation rules.

The calculator shows current PMI cost. Run mental math: subtract PMI from monthly total at year 7 to see what your “steady-state” payment becomes after PMI ends.

FHA at low down payments has permanent MIP — never drops. Plan to refinance to Conventional once equity rebuilds. Compare both head-to-head with the FHA vs Conventional guide.

Both, for different reasons. Interest rate determines your P&I monthly payment. APR includes lender fees, which is the apples-to-apples comparison number for shopping lenders.

Be careful: APR assumes you hold the loan to term, which most borrowers don't. For shopping lenders, ask each one for the same loan amount and structure, then compare both rate and total closing costs separately.

Calculator uses posted average rates. Real quotes depend on FICO score, LTV, DTI, occupancy (primary, second home, investment), property type, and the specific lender pricing the day you lock.

760+ FICO with 25%+ down typically prices below default. 620–680 FICO or 95% LTV typically prices above. Get a real quote before relying on calculator output for big decisions.

This calculator handles fixed-rate scenarios only. ARM (adjustable-rate mortgage) comparison is more complex because the rate changes over time.

For an ARM scenario: model Year 1–5 at the initial rate, Year 6+ at projected adjustment caps. Don't assume the initial ARM rate continues — that's the most common math mistake on ARM analysis. Talk to an LO for ARM-specific scenarios.

That's exactly how this tool should be used. The right answer is sensitive to inputs you control (down payment, term) and inputs you don't (rate, your hold period).

Run multiple scenarios. Identify the “break” point where Scenario A stops winning. If your situation is near that break point, the decision is genuinely hard — talk to an LO for a second opinion. If you're clearly on one side, trust the math.

Want a single-scenario PITI breakdown instead? Use the Mortgage Calculator. Already own and weighing a refi? Try the Refi Calculator.